1 year ago
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Offers trading of custody assets
Major crypto asset (virtual currency) exchange OKX has partnered with “Komainu”, which provides custody services for digital assets, on the 6th to realize safe trading of assets in custody for institutional investors 24 hours a day, 7 days a week. announced.
OKX’s participation in the collateral management platform Komainu Connect will allow institutional investors to trade segregated assets in custody on the OKX platform 24 hours a day.
Komainu Connect is a service that was just launched in April. It eliminates the need for investors to post collateral with counterparties and instead provides the ability to safely store assets, reducing the credit risk posed by users’ counterparties.
Lennix Lai, Head of Global Commercial at OKX, explained the significance as follows:
Institutional investors want a balance between maintaining the ability to deploy capital when an investment opportunity arises and having their assets safely held with a large custodian.
That is why we are pleased to partner with Komanu to provide a way for investors to keep their assets safe while not compromising on their returns.
What is custody
Refers to holding and managing assets on behalf of investors. A term widely used for assets other than virtual currency. It refers to a service that performs a wide range of operations, such as asset custody, settlement related to trading, receipt of principal and interest, dividends, and exercise of voting rights. A company that performs custody is called a custodian.
Cryptocurrency Glossary
Solutions based on tripartite agreements
Lai said funds deposited in Komanu’s custody wallet will be transferred to Komanu’s collateral wallet and linked to the OKX account.
OKX’s accounts reflect the balance of client funds and allow trading across more than 700 spot and derivatives markets offered by OKX.
Komanu Connect’s solution is based on tripartite agreements similar to those implemented in traditional finance. It is in the form of a three-way legal agreement between Komanu as a custodian, OKX as a liquidity provider, and Komanu users who are also OKX’s customers.
Staking service also implemented
Komainu was established in June 2020 as a joint venture between Japan’s Nomura Holdings, British asset manager CoinShares, and cryptocurrency hardware wallet maker Ledger.
In 2022, we introduced a yield granting service called “Komainu Yield”. Komanu will safely store the customer’s virtual currency while staking it on their behalf and granting the yield offered by various PoS (Proof of Stake) instruments.
connection: Custodian “Komainu” established by Nomura HD to provide virtual currency yield service
What is staking
By owning a specific virtual currency, you contribute to the management of the blockchain network of that currency and receive rewards in return. Strictly speaking, it is necessary not only to hold virtual currency, but also to deposit it on the network. It can be said to be similar to a system in which legal currency is deposited in a bank account and interest is received after a certain period of time. Staking can be done in currencies that use the PoS (Proof of Stake) consensus algorithm.
Cryptocurrency Glossary
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